Oil Plunges in Worst Reaction to OPEC Since 2014 on Demand Woes
Oil had its worst reaction to an OPEC meeting in more than four years, with prices sliding just after the cartel agreed to prolong production curbs as fears about the global economy mount
Futures closed down 4.8% in New York, the steepest decline since May 31 and the biggest drop after an OPEC gathering since November 2014. Bank of England Governor Mark Carney warned of dangers from rising protectionism around the globe, citing a “widespread slowdown” that may require a major policy response. That added to worries following weak manufacturing reports from the U.S., China and Europe.
Brent for September settlement declined $2.66 to $62.40 a barrel on the ICE Futures Europe Exchange.
Saudi Arabia said it would keep its output below 10 million barrels a day, even lower than required under the so-called OPEC+ deal. Saudi Energy Minister Khalid Al-Falih said he was “enthusiastic“ about the outlook for oil demand.
Trading Central –Brent: sentiment is a sell to 6140 if Below 6345
Trading Central –GBPCAD: sentiment is a Buy to 1.6627 if Above 1.6443
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